Ariz. Admin. Code § R18-12-316 - Local Government Guarantee
A. Local government owners and operators may
satisfy the requirements of
R18-12-303 by obtaining a
guarantee that conforms to the requirements of this Section. The guarantor
shall be either the state in which the local government owner or operator is
located or a local government having a "substantial governmental relationship"
with the owner or operator and issuing the guarantee as an act incident to that
relationship. A local government acting as the guarantor shall meet the
requirements of one of the following:
1.
Demonstrate that it meets the bond rating test requirements of
R18-12-314 and deliver a copy of
the chief financial officer's letter as contained in
R18-12-314(D) or
R18-12-314(E) to
the local government owner or operator;
2. Demonstrate that it meets the financial
test requirements of
R18-12-315 and deliver a copy of
the chief financial officer's letter as contained in
R18-12-315(C) to
the local government owner or operator;
3. Demonstrate that it meets the local
government fund requirements of
R18-12-317(A)(1),
R18-12-317(A)(2)
or R18-12-317(A)(3)
and deliver a copy of the chief financial officer's letter as contained in
R18-12-317(B) to
the local government owner or operator.
B. If the local government guarantor is
unable to demonstrate financial assurance under
R18-12-314,
R18-12-315,
R18-12-317(A)(1),
R18-12-317(A)(2)
or R18-12-317(A)(3),
at the end of the financial reporting year, the guarantor shall send by
certified mail, before cancellation or non-renewal of the guarantee, notice to
the owner or operator. The guarantee will terminate no less than 120 days after
the date the owner or operator receives the notification, as evidenced by the
return receipt. The owner or operator shall obtain alternative coverage as
specified in
R18-12-318.
C. The guarantee agreement shall be worded as
specified in subsection (D) or (E), depending on which of the following
alternative guarantee arrangements is selected:
1. If, in the default or incapacity of the
owner or operator, the guarantor guarantees to fund a standby trust as directed
by the Director, the guarantee shall be worded as specified in subsection
(D);
2. If, in the default or
incapacity of the owner or operator, the guarantor guarantees to make payments
as directed by the Director for taking corrective action or compensating 3rd
parties for bodily injury and property damage, the guarantee shall be worded as
specified in subsection (E).
D. If the guarantor is a state, the "local
government guarantee with standby trust made by a state" shall be worded
exactly as provided in
40 CFR
280.106(d), amended as of
October 13, 2015, except that instructions in brackets are to be replaced with
relevant information and the brackets deleted. If the guarantor is a local
government, the "local government guarantee with standby trust made by a local
government" shall be worded exactly as provided in
40 CFR
280.106(d), amended as of
October 13, 2015, except that instructions in brackets are to be replaced with
relevant information and the brackets deleted.
E. If the guarantor is a state, the "local
government guarantee without standby trust made by a state" shall be worded
exactly as provided in
40 CFR
280.106(e), amended as of
October 13, 2015, except that instructions in brackets are to be replaced with
relevant information and the brackets deleted. If the guarantor is a local
government, the "local government guarantee without standby trust made by a
local government" shall be worded exactly as provided in
40 CFR
280.106(e), amended as of
October 13, 2015, except that instructions in brackets are to be replaced with
relevant information and the brackets deleted.
Notes
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